Airline subsidies row to go to WTO

By

The European Union on Tuesday returned to the World Trade Organization to pursue action against the United States for what the EU says were illegal subsidies that the US government paid to Boeing, the US aircraft manufacturer. According to EU trade commissioner Peter Mandelson, the EU has not ruled out pursing action against Japan as well for giving what it calls indirect subsidies to Boeing. Boeing has moved some of its aircraft production facilities to Japan.Even as he announced that the EU was returning the dispute to the WTO, Mr. Mandelson said that action by the WTO will not be conclusive and that further negotiations will be required between the US and the EU. The EU announcement came a day after the US announced that it would ask the WTO to rule that nations of the EU could no longer give help to Airbus, the European aircraft maker. The US holds that because Airbus is now the worlds largest aircraft manufacturer it does not need the help of the nations of the EU. There is still time for the EU and the US to negotiate an end to their disputes over subsidies to aircraft manufacturers, as any ruling from the WTO will not come for at least 18 to 24 months.